The light is in our eyes...

As pointed out above, seeing is done in the brain. It tries to help fill in the gaps. You have a blind spot in each eye (where the nerve bundle comes in) but it is at a different spot in each eye so it's an issue only when you close one eye and look a certain way.

You can find the blind spot and make the tip of your finger disappear when you do it right but even in this case you still get a background image that seems to fit. This is just your brain making it up.

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The question though is why the image appears to be "over there" and not inside my eye.... (there is a scientific term for this issue but I simply can not remember it...)

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Because of the structural arrangement of the lens and receiving surface at the back of the eye, an inverted image forms. The brain corrects this to right way up. How does the brain know what is right way up...via experience over its millions of years of evolution dealing with its environment via its senses. The same goes for depth perception. You don't 'see' space, your brain knows how to interpret information, that is parallax.
Again, how does it know...experience over its millions of years of evolution. Seattle did mention evolution.
If your in a darken room with just a distant sphere light source, and the sphere is equally bright all over, you may have difficultly knowing it's not a flat disk also equally bright all over.
Edit to add...If you showed a baby a photo of parallel train lines meeting at a point in the distance, would the baby know that point is in the distance...brain experience of the eye.

According to well understood theory, we do not actually see the source we only see the light that the source emits. ( on our retina)
How are we able to say we are seeing the source?
How do our light effect models allow for us to see the source (at location, "over there") even if historical ( ie. astronomy).

BTW apologies for any confusion as I am trying to find out how to ask the question.
images taken and modified from posted video as we go...

Notice that any light from a star is focused to that point of source .

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In the case of a star the actual star isn't even in the location we "see" it to be... some cases millions of years have passed since the light impacts upon our retinas and the star has moved from it's original position.

It is hoped that once the "Biology"is done with we can move onto the physics of photons and how they are being sensed/observed, experienced by the observer.

An example question:Scenario:
Single light source (light globe) in a darkened room. ( say around 10 feet away)
One eye closed to avoid confusion.
One observer
Question:
Would you say that the light of that source hits all photoreceptor cell (PRC) or cones on the observer's retina simultaneously? That is to say all PRC's are being effected simultaneously.

If so, how is it the observer can still see the darkened background and the light as a single point in that room?
Shouldn't the observer just see the light only (visual white out)?

Well, for one thing, if you used one of those new, fancy femtosecond shutter speed cameras, you would not only see that silhouette against the light beyond the door. You would also see what exactly was around the edges of the long sides of that door. This is possible only because light also has the properties a wave phenomenon. The door with a silhouette is actually a double slit.

When you observe one side of the slit, you decohere the other, so it will require more than one exposure with your femtosecond camera to see everything there is around both corners of the sides of the door. The direction you observe matters.

In the case of a star the actual star isn't even in the location we "see" it to be... some cases millions of years have passed since the light impacts upon our retinas and the star has moved from it's original position.

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Because of the Ehrenfest paradox, if that star appears at 180,000 ly distant on the other side of the Milky Way, you also actully see a Lorentz distortion (contraction) of the distances aeons ago between that star and the stars in relative motion along either side of it.

If you are on the rim of a relativistic merry-go-round, any element of the rim with an instantaneous velocity component that is opposite yours will begin to Lorentz contract, and the point on the other side of the rim directly opposite your position will have maximal contraction. The amount of the contraction would be independent of the direction of spin.

Distance perspective for closer objects, in your eye or in any optical instrument, is simply an artifact of the inverse square law, of course. Sorry, if that was all you were going for, it's just too simple. I think I know you better than that, QQ.

In the case of a star the actual star isn't even in the location we "see" it to be... some cases millions of years have passed since the light impacts upon our retinas and the star has moved from it's original position.

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Disagree .

Yeah well there is parallax and precession . Which understands the movement of stars.